New German government accelerates transition, vows to ban coal by 2030

Germany's new progressive coalition, comprised of the centre-left Social Democrats (SDP), the left-wing Greens and the neoliberal Free Democrats have vowed to end coal use in Europe's largest economy by 2030, eight years ahead of the schedule set by Merkel's government - effectively accelerating the government's transition away from fossil fuels.

The bill still requires ratification by each of the parties involved in the new government, but if it goes through, it could spur far-reaching changes for Germany.

Coal still remains top of the energy mix in Germany, unseating wind as the top generator for the first half of 2021, despite pushes towards renewable energy.

Read more: Coal unseats wind as Germany's primary energy source

In 2020, coal accounted for around 24% of Germany's energy mix, while wind energy dropped to its lowest levels since 2018.

This is down from a mammoth 43% market share in 2010. Coal alone is responsible for 40% of global carbon emissions.

SDP leader Olaf Scholz is expected to take over as Chancellor, replacing Angela Merkel, who explicitly described the new coalition as heralding a "progressive government", and signalling "an end to the Merkel era".

"There is no climate protection for free. We have planned a lot of investments for Germany. Because this is the only way we can stop man-made climate change, operate climate-neutrally and be at the forefront of technology in the world," Scholz tweeted on Wednesday.

In addition, Germany also hopes renewable energy can account for 80% of its energy needs by 2030 - a claim put forth by the Green Party, whose co-chair Robert Habeck is set to become the economy minister - which is expected to be achieved with the installation of 30GW of wind and solar energy, which should also see the country's use of natural gas decrease.

Natural gas, which is currently responsible for energy shortages in Europe over controversies linked with the Nord Stream 2 pipeline, accounts for roughly 25% of Germany's energy mix.

40% of Europe's natural gas comes from Russia, which is set to double should Nord Stream 2 be approved. However, Germany suspended approval of the pipeline earlier this month. The Green Party were firmly opposed to the pipeline, so this new coalition could put its future in question.

Another of the Green Party's aims - to put 15 million electric vehicles on Germany's roads within the same time frame - is also up for consideration.

The coalition has also revealed a plan to increase carbon pricing, to further incentivise polluters to diversify their energy consumption. Nuclear energy is also expected to be abandoned by 2022 at the latest.

Green hydrogen is also set to play a role, they revealed, with 10GW of electrolysis capacity planned for installation by 2030.

According to EuroNews, the coalition is planning to "implement the review step envisaged for 2026 in the Coal Phase-out Act by the end of 2022 at the latest".

Other pledges the new government have made include raising the federal minimum wage to €12 per hour, lowering the voting age to 16, and the introduction of the controlled legalisation of cannabis.

Read more: Portugal becomes fourth EU country to quit coal

"Our goal is to be the first alliance between Social Democrats, Greens and Free Democrats at the federal level", Scholz said at a press conference on November 24. "A coalition of three partners who share their strengths for the benefit of our country. We are united in the belief of progress and the fact that politics can achieve something good."

"We are united by the will to make this country better, to bring it forward and to bring it together", he added.

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